Supreme Court rejects Tiger Global’s tax plea in Flipkart stake sale case

The Supreme Court on Thursday ruled against US-based investment firm Tiger Global in its challenge to taxation on a major stake sale in ecommerce firm Flipkart.the court held that once a transaction is found to be prima facie structured to avoid income tax, the statutory bar under the proviso to Section 245R(2) of the Income Tax Act, 1961 applies. In such cases, tax authorities are not required to examine the merits of taxability.